‘Housing Well Placed to Withstand a Rate Hike,’ Report Says

Dec. 2, 2015

Researchers at Capital Economics say that the housing market can handle a Fed interest rate hike, HousingWire reports.

“After all, even on our forecast, rates will remain historically low for some time yet. We expect 30- year mortgage rates to rise to 5.25 percent by the end of 2017, from around 4.0 percent now,” the report says.

Capital Economics isn’t alone. Chief economist at First American Mark Fleming said in August that “an expected move by the Federal Reserve this fall to raise rates will have a moderating, but not devastating impact on market capacity for existing-home sales.”

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